In the trading industry, everyone thinks that setting a stop loss can make you sit back and relax and avoid losing a lot of money, but the strange thing is, why do so many people still play contracts and end up with a liquidation?
When we trade normally, we set a stop loss point as soon as we enter the market, and control our positions well. We know how much we will lose in a single transaction, and we feel that this should be able to protect our small capital and not lose too much. But in fact, things are not that simple.
Stop loss, it can indeed help you avoid losing too much at once, but the real reason for liquidation is not that the stop loss is not set well. To put it bluntly, if you operate with a heavy position, you will be liquidated sooner or later, and this is human nature.
You see, human nature is very complicated. Once the market fluctuates, people's hearts will also sway, and greed and fear will follow. Therefore, if you want to do well in the trading market, you can't just rely on stop loss. You also have to cultivate your mentality, learn to stay calm in the storm of the market, and use your brain and patience to deal with it. This is a real master.
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